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U.S. steel stocks jump as Kobe Steel crisis deepens
October 13, 2017 / 1:24 PM / 2 months ago

U.S. steel stocks jump as Kobe Steel crisis deepens

Oct 13 (Reuters) - Shares of U.S. steelmakers jumped in premarket trading on Friday after Japan’s Kobe Steel Ltd said the firm’s data cheating may have spread beyond the country to affect about 500 companies, sparking global supply chain concerns.

Shares of AK Steel Holding Corp, U.S. Steel Corp , Nucor Corp, Steel Dynamics Inc were up 2 percent to 5 percent in premarket trading.

“The Kobe Steel crisis is definitely helping other steel producers,” Wunderlich Securities chief market strategist Art Hogan said.

The scale of the misconduct at Japan’s third-largest steelmaker weakened its shares by 9 percent, wiping about $1.8 billion off its market value this week.

The firm’s chief executive Hiroya Kawasaki was ordered by the government to report on how the misconduct occurred and address safety concerns. (Reporting by Arunima Banerjee and Tanya Agrawal in Bengaluru; Editing by Arun Koyyur)

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